First initial share sale big boost for local market

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First initial share sale big boost for local market

Huafeng Textile International Group Ltd., a Hong Kong-based fabrics maker, plans to sell as much as HK$300 million ($38.4 million) of stock next month in Korea’s first initial share sale by a foreign company.
The company will use the money for mergers and acquisitions or expansion of facilities, said Cai Zhenrong, chairman of the Hong Kong-listed company, in a statement today by Korea Exchange Inc., operator of the nation's stock market.
The Korean exchange is seeking to attract companies in countries such as China and Vietnam to list their shares. The Korean market, which began 2006 as Asia’s fourth biggest by market value, now ranks fifth after it was overtaken by China, according to data compiled by Bloomberg.
Huafeng Textile expects to raise HK$250 million to HK$300 million in next month’s share sale, Cai was cited as saying in the statement.
The company, which paid out 30 percent of profit as dividends, will maintain its dividend policy in Korea, Cai said.
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